RMN Watch: The Great Divergence Has Begun
Five networks. Five playbooks. One mandate for brands: adapt or get left behind.
For years, the big story around retail media networks (RMNs) was all about explosive growth. It felt like a gold rush, with ad dollars pouring from traditional media into retailer ecosystems. But now, that story is changing.
We’re witnessing a brand new phase. This isn’t about imitation anymore; it’s about differentiation.
The top players have stopped building carbon copies of Amazon Ads. Instead, they’re carving out their own strategic identities, all designed to win in the long run. The result is a fragmented, fascinating, and high-stakes battleground where every major retailer is writing its own rulebook for the future.
The Five Playbooks Defining the Future of Retail Media
- Walmart Connect: The Competitive Armor
Walmart’s global ad business is up a staggering 46% year over year (31% in the U.S. alone), and the company is being crystal clear about its strategy. This isn’t just about finding a new revenue stream; it’s about building strategic insulation.
Think about it: those advertising profits are helping Walmart absorb rising costs (like tariffs) while keeping its prices famously low for shoppers.
The takeaway: Retail media is no longer a side hustle for Walmart. It’s the profit engine that funds its core promise of pricing power.
2. Target Roundel: Selling the “One Target” Experience
Target is doubling down on its unified omnichannel model. It’s blending media, product design, merchandising, and its powerful Target Circle loyalty program into one seamless ecosystem.
They aren’t just selling you ad space. They’re selling you access to their unique, trend-driven audience. The catch? Your brand messaging has to feel consistent and authentic everywhere that shopper encounters Target.
The takeaway: For Target, media is a core extension of its brand identity, not just another placement to sell.
3. Kroger Precision Marketing: Data for Everyone
Kroger is making a fascinating move. It’s expanding its managed-service offerings for Connected TV (CTV) and programmatic audio. This is huge because it lowers the technical barrier that kept so many smaller CPGs out of the premium ad game.
By running these complex campaigns for brands, Kroger is effectively saying, “We’ll handle the tech, you just focus on the results.”
The takeaway: Kroger is on a mission to democratize access to retail media, trying to level the playing field with its powerful data.
4. The Home Depot: Building a Self-Service Empire
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With its new “Orange Access” platform, The Home Depot is handing the keys over to its suppliers, empowering them to take direct control of their campaigns.
This big push toward self-service has a clear goal: double the number of advertisers on its platform by cutting out the friction and putting data transparency directly in their hands.
The takeaway: The Home Depot is betting that the future of retail media isn’t just managed service, but also brand autonomy.
5. Sephora: Betting on Creator-Led Commerce
In the world of beauty, authenticity is everything. Sephora gets this, and it’s going all-in.
Through its popular Sephora Squad and micro-influencer programs, Sephora is moving beyond simple impressions. It’s building deep community trust. It’s not about ads that shout; it’s about authentic voices that genuinely persuade.
The takeaway: Sephora is proving that in emotional categories like beauty, influence matters more than inventory.
This Leaves Brands with Three New Challenges
1. The Measurement Crisis
Walmart’s new strategy (using ad dollars to keep prices low) completely breaks traditional metrics like ACoS. If you’re still measuring in silos, you’re missing the entire point. The future requires a holistic way to see how ad spend connects to total business performance, not just media ROI.
2. The Orchestration Challenge
This isn’t just about “buying media” anymore. Winning now means orchestrating one unified brand story across everything… CTV, social, search, and in-store… and tuning that story to each retailer’s unique playbook.
3. The Execution Challenge
With more platforms moving to self-service, the sheer volume of data and decisions has exploded. Let’s be honest: managing this complexity is now beyond human capacity. This makes an AI-driven strategy an operational necessity, not just a “nice to have” luxury.
Our Take: Welcome to the Age of AI-Enabled Retail Partnerships
The retail media boom has officially matured. Growth alone isn’t the story anymore. Strategy is.
Each network is carving its own path, from Walmart’s financial fortress to Sephora’s creator-led community. For brands, this means one simple thing: adapt or get left behind.
To thrive in this new world, marketers have to pair human creativity with machine intelligence. You need an AI-native approach that can unify insights, automate decisions, and orchestrate your strategy across every single retail partner’s playbook.
The Great Divergence is here. The only question left is: will your brand evolve fast enough to keep up?
This article was inspired by MediaAMP’s original piece, “RMN Watch: The Great Divergence Begins.” Read the full version on MediaAMP for deeper insights into retail media’s next era.
